Question
Deferred loss for wash sale
Dear All,
I have a question about cost basis and wash sale. I bought 100 shares of A for $100. However, I felt that I bought them at a higher price so I sold them for $90 making a loss of $10. I immediately bought 90 shares of A for cost of $125 and sold couple of days later for $145.
Now my questions are:
1) When I bought the shares second time it tiggered wash sale. However, when I sold second set of shares it immediately triggered net capital gain of $20-$10 = $10. But my brokerage account shows a deferred loss $9. What is that for? I already have a positive capital gain of $10 overall.
2) How does ‘Deferred loss’ affects me in taxes if I have net positive gain? Also, is there any way I can get rid of these ‘Deferred losses’?
Regards,
Sandy
I have a question about cost basis and wash sale. I bought 100 shares of A for $100. However, I felt that I bought them at a higher price so I sold them for $90 making a loss of $10. I immediately bought 90 shares of A for cost of $125 and sold couple of days later for $145.
Now my questions are:
1) When I bought the shares second time it tiggered wash sale. However, when I sold second set of shares it immediately triggered net capital gain of $20-$10 = $10. But my brokerage account shows a deferred loss $9. What is that for? I already have a positive capital gain of $10 overall.
2) How does ‘Deferred loss’ affects me in taxes if I have net positive gain? Also, is there any way I can get rid of these ‘Deferred losses’?
Regards,
Sandy
